How to Finance Your First Motorbike

Buying your first motorbike is an exciting milestone - whether it's for weekend rides, everyday commuting, or fulfilling a long-time dream of hitting the open road. But before you can feel the wind in your face, you'll need to sort out how to finance it.

Financing a motorbike is different from financing a car, and as with any major purchase, there are a few things you need to know to make the right financial decisions. At AFS, we've been helping Australians finance their motorbikes for years, and we’re here to share some tips on how to secure a great deal on your first bike.

Set a Realistic Budget

Before you even start looking at motorbikes, it's crucial to set a clear budget. Don't just think about the sticker price of the bike - consider the total cost of ownership. This includes insurance, registration, fuel, maintenance, and protective gear.

When setting your budget, think about how much you can comfortably afford in monthly repayments. It's important not to overstretch yourself financially, especially when you factor in those ongoing expenses. At AFS, we always advise our customers to look beyond the price of the bike and plan for the whole picture of ownership.

Choose the Right Loan type

 There are a couple of options when it comes to financing your motorbike. Let's break them down:

• Secured Loan: With a secured loan, the motorbike itself acts as collateral for the loan. This means the lender has the right to repossess the bike if you can't make your repayments. Because secured loans are less risky for the lender, they tend to offer lower interest rates and better terms.
• Unsecured Loan: An unsecured loan doesn't require any collateral, which means the lender is taking on more risk. As a result, the interest rates on unsecured loans are usually higher, but you won't have to worry about losing your bike if something goes wrong financially.

 At AFS, we offer both secured and unsecured loans for motorbikes, and our team is here to help you decide which option best suits your financial situation.

Check Your Credit Score

Just like with any loan, your credit score plays a big role in determining the interest rate and terms of your motorbike loan. The better your credit score, the more favourable the rates you'll be offered.

Before applying for a loan, take some time to check your credit score and, if necessary, take steps to improve it. Pay off any outstanding debts, make sure all your bills are up to date, and check your credit report for any errors. At AFS, we're always happy to walk you through the application process and help you understand how your credit score affects your financing options.

Consider a Deposit

One way to reduce the total cost of your loan is by putting down a deposit. The bigger your deposit, the less you'll need to borrow, which means lower monthly repayments and less interest paid over time.

If you've saved up some money, even a small deposit can make a big difference. It not only reduces the size of your loan but can also improve your chances of getting approved, especially if your credit score isn't as high as you'd like.

At AFS, we encourage customers to aim for a deposit where possible, as it can lead to better loan terms and lower repayments in the long run.

Compare Interest Rates and Loan Terms

Interest rates and loan terms can vary between lenders, so it's important to shop around and compare your options. A lower interest rate will save you money over the life of the loan, while a longer loan term may reduce your monthly repayments but increase the total amount of interest paid.

At AFS, we offer competitive interest rates and flexible loan terms for motorbike financing. We'll work with you to find the best option for your budget and financial goals.

Get Pre-Approved

Before you head to the dealership, consider getting pre-approved for a motorbike loan. Pre-approval gives you a clear understanding of how much you can borrow and what your interest rate will be, so you can shop with confidence. It also speeds up the buying process once you've found the bike you want.

At AFS, we offer pre-approval for motorbike loans, giving you peace of mind and the power to negotiate a better deal when you're ready to make your purchase.

Don't Forget the Extras

When you're buying a motorbike, there are a few extras you'll need to budget for. Protective gear, like a helmet, jacket and gloves, is a must, and you'll also need to factor in insurance and registration costs. If you're buying a used bike, it's a good idea to get it inspected by a mechanic to ensure it's in good condition.

At AFS, we always remind our customers to budget for these additional costs. It's easy to get caught up in the excitement of buying your first bike, but careful financial planning will ensure you enjoy the ride without any unexpected surprises.

Final Thoughts

Financing your first motorbike is a big decision, but with the right planning and knowledge, you can secure a loan that works for you. Start by setting a realistic budget, understanding your loan options, and checking your credit score. Consider putting down a deposit, and don't be afraid to shop around for the best interest rates and loan terms.

At AFS, we're here to guide you every step of the way. Whether you're looking for a secured loan or an unsecured loan, need help with pre-approval, or just want to understand your options, our team of experts is ready to help. With competitive rates and flexible loan terms, we'll make sure you're on the road with your first motorbike - and a loan that fits your financial needs.

Ready to get started? Talk to AFS today, and let's get you on that bike!